Romania has the most affordable housing prices, but the usual costs are among the highest in Europe

Romania has the most affordable housing prices in the eastern half of Europe compared to the average net monthly salary, according to a study by Storia.

On the other hand, our country ranks last in the European Union in terms of the ease with which residents pay utility bills and cover their usual expenses for food, dining out or buying goods.

How affordable is housing in our country?

With an average net salary of approximately 977 euros per month and an average price of approximately 1,409 euros per square meter for housing, Romania is in the middle of the ranking in the EU from the perspective of the degree of affordability when buying a home, with an index of 1 ,44.

We are tied with Bulgaria (1.44) and ahead of Hungary (1.86). Most countries in the eastern half of Europe have an index close to 2, with higher values for the Czech Republic (2.15) and Poland (2.18) and 2.55 for Slovakia.

Bucharest is among the most affordable capitals in the European Union for the purchase of housing, when the average net salaries and the average price per square meter in the capitals are taken into account.

Thus, the Romanian capital ranks 6th out of 27 in the European Union in this respect, with an accessibility index of 1.5, being more accessible only Madrid (index 1.08), Brussels (1.23), Nicosia (1.25 ), Riga (1.35) and Sofia (1.45).

Romanians continue to have serious financial problems

Romania ranks 20 out of 27 in the European Union on the accessibility index for paying utility bills, based on estimated costs for electricity, natural gas, drinking water or household waste.

Thus, in the case of an apartment, utility costs in Romania reach the equivalent of around 134 euros per month, corresponding to an affordability index of 0.14 for an average net salary of 977 euros.

One of the explanations for this positioning is that Romania has the third highest price for electricity in the European Union (0.42 EUR/kWh) and the sixth highest price for natural gas (0.14 EUR/kWh).

In the case of usual expenses, such as local transport, food bought in hypermarkets, meals at restaurants or buying clothes and shoes, Romania ranks 23 out of 27 in the European Union.

According to data from the Numbeo platform, the costs reach the equivalent of 585 euros per month for a person living alone, so the affordability index compared to the average net salary of 977 euros is 0.6.

One of the explanations is that Romania currently has the highest inflation in the European Union (7.1%), compared to the average of 2.8% in the EU and 2.6% in the Eurozone, according to the latest Eurostat report.

Thus, Romania offers lower usual costs relative to salary only compared to several states in the region: Bulgaria (0.68), Slovakia (0.68), Latvia (0.7) and Greece (0.73).

In specific categories, Romania ranks only 24th out of 27 in the accessibility index for spending at the hypermarket for a month with an index of 0.2, equal to Latvia.

In the case of a restaurant meal with main course, side course and dessert for one person, Romania fares a bit better and ranks 19th out of 27, with an accessibility index of 0.02, above Hungary, Bulgaria and Croatia (0.021).